Posted by
China mobile phone on Thursday, March 12, 2009 3:44:09 AM
LIKE the drinking of tea, collecting teapots can become an addiction. But it is a popular one among those who consider a few pieces of fine art, or even fine craftwork, to be an asset in any investment portfolio.
While the debate about whether or not art is an investment goes on with no conclusion, serious buyers continue to bid high prices at Sotheby's and Christie's auctions. Others haunt galleries, while the would-be art collectors scour mar-kets for a piece to get them started.
And while it is, admittedly, more difficult to dissolve artwork into cash than it is with gold or diamonds, art has a value which is difficult to define in dollars.
Art, like any commodity, has a value depending on who wants to buy and who wants to sell.
While it may not always be useful in the same way as commodities coffee and rice, or practical as in platinum or diamonds, or even find an equal exchange as in the money markets ("your Picasso will never equal my Monet"), it will be as keenly monitored and carefully guarded as any asset in the world of high finance.
The value of most commodities reflects their rarity, the need for them, or the ease with which they can be traded.
Art, though, has a special place. Does any broker or investor love his blue chip stock, appreciate looking at his government bonds or enjoy showing off his forex account to dinner guests in the same way the art collector draws at-tention to his original Van Gogh hanging on the wall?
As Mr Charles Garnett, sales and marketing manager for Altfield Interiors, points out, the benefit of investing in art is double-edged.
It has both aesthetic appeal and intelligently chosen pieces can return high yields.
"In other words, one of the criteria for buying a painting, or a piece of ceramic, should be that you like it," said Mr Garnett.
Like any investment, every piece of art carries the risk that someone else might not be prepared to pay more than you paid for it.
Of all assets, art is personal and in the eye of the beholder. To buy strictly for investment is a trap.
And, even having chosen a piece which is original or at least beautiful, there is no guarantee that he will not fall out of love with it as fashions and interior decoration changes. This is where perspective - buying objectively - comes into the equation.
And a collector should not expect that a painting will simply appreciate.
"If you are buying a piece expecting a return in less than five years, you will most likely be disappointed," said Mr Garnett.
But art is as prone to fluctuations in market availability and demand as any commodity. The death of an artist can, overnight, turn valuable paintings into priceless museum pieces.
And when one collector hordes a collection, a decision to sell it in its entirety rather than as separate work can send the value escalating.
So, there is the theory. In practice, art is affordable to the common man. With no talk of minimum amounts of US$ 1 million required to start an "artfolio", it is both a pleasurable and lucrative means of investment.
And, according to Mr Garnett, just $ 10,000 is enough to put you in the picture.
Mr Garnett's favourite choice is in Chinese and Tibetan collectables for the obvious reason that, in Hongkong, people are on the doorstep to a treasure house of such works.
"You could say such pieces are undervalued," said Mr Garnett.
"And interest in collecting Chinese artworks is spreading as the Chinese population disperses throughout Canada and the United States, concentrating in New York, San Francisco and Vancouver."
What will $ 10,000 buy?
A painting from popular contemporary Chinese artist, Je Hegen, entitled Portrait of a Bai Woman could be had for $ 4,700. Works from Shanghainese artist Yong Ping, which were selling for around $ 5,500 three years ago, now fetch $ 9,000.
Similarly, a painting by 22-year-old Wu Yang could be hanging on your wall for $ 5,500 and gaining in value.
These were the artists favoured by Mr Garnett and could be found in the J R Guttinger gallery in Central and Zeestone gallery in Exchange Square.
Other low-priced purchases include tsampa bowls from Tibet. These burwood and silver bowls, used for mixing butter, tea and barley, vary in price, depending on how ornate they are, from $ 2,500 up to $ 9,000.
Ironically, perhaps, the value to the Tibetans is not in the silver, but in the wood which is a rarer commodity in their country.
But buying art, as with any equity, is not for the uninitiated. Mr Garnett warns that reproduction bowls are pro-duced in Nepal and it is difficult to spot the authentic from the fake tsampa , although those from Nepal tended to be newer.
But, Mr Garnett added, galleries such as Zeestone, Plum Blossoms, Altfield and Teresa Coleman, where such ar-tefacts could be found, would not be guilty of selling these reproductions.
He said the value increased depending on whether the silver was the rarer carved silver or moulded.
And what about those teapots?
According to Ms Mee Seen-loong of Sotheby's, with $ 10,000 and a lot of patience, a collector could secure sev-eral fine examples of
Yixing teapots.
The town of Yixing is in the small county of Jiangsu and, of the 50,000 population, 13,000 are engaged in the manufacture of ceramics.
Yixing teapots are made from three basic clays of the dozen in the area. They are zisha (purple), banshanlu (light brown) and zhusha (red).
These teapots date back to the Ming dynasty and the most valuable are those which bear the mark or painting of the potter.
The number of teapots made in the Ming Dynasty was small and the workmanship demanded by an elite clientele was high. Almost every item was a masterpiece and, today, represents a potted history of tea-making in Chinese as well as an attractive investment.